DALLAS-In a 40-day spin, locally based Chase Hospitality Corp. has refueled its till with a $35-million refinance collateralized by four of its five hotels in Dallas/Fort Worth. The 75% loan-to-value financing has a 10-year term at fixed-rate interest hovering 5.5% and 25-year amortization.
"We had a bidding war for this pool," Peter M. Berk, president of New York City-based AFC Hotel Finance Group, tells GlobeSt.com. The competition's winner is a European-based bank and investment group with US operations.
The refinanced package includes a trio of one-year-old, ground-up hotels and one renovation. Chase's developed properties are the 96-room SpringHill Suites at 2363 Stemmons Trail near Love Field and Texas Stadium in Dallas; 124-room SpringHill Suites at 5800 High Point Dr. near Dallas/Fort Worth International Airport in Irving; and 137-room Homewood Suites by Hilton at 2747 N. Stemmons Fwy., also in Dallas. The renovated hotel, bought nearly five years ago, is the 153-room Courtyard by Marriott at 4940 Regent Blvd. in Irving.
The loan arranger credits the quick-moving refinance of its first transaction with Chase to the borrower's sponsorship, asset qualities, locations and Hilton-branded flags flying over each hotel. "They were extremely well organized. We didn't encounter any major issues," Berk says. "They timed the market well."
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